Posts Tagged ‘Paraguay culture’

When it comes to investing, Warren Buffett doesn’t listen to all the chatter in the market. Perhaps the world’s greatest value investor, he invests into demand.

In his recent annual letter to shareholders, Buffett describes in an essay why his real estate investments have been so good to him over time – no matter what market conditions were or “experts” were saying. The same thing is happening to real estate in Paraguay.

He outlines two particular real estate investments that have paid off big time and reveals the reasons why they have, even though over the years markets have shifted and people’s opinions of real estate have changed. With Paraguay’s economy heating up real estate investing in Paraguay is moving full swing ahead.

The key, he says, is demand. No matter what, “Corn will always be growing in Nebraska,” he said. And people will always need somewhere to live.

In fact, the essay reveals five major philosophies Buffett sticks to in all his investments, including the one big thing to focus on and how to avoid speculating. Guess what, we hate speculating too!

For a limited time, investors can request a free skype consultation which includes an investor hotlist of investment properties that fit the Buffett model.

To request this FREE consultation inquire with our website with the subject line “Buffett style investing” and we’ll be happy to chat!

Paraguay Culture: A Party at a friend’s house in Paraguay

The ultimate acceptance as an expat in Paraguay is get invited to a friend’s house for asado and some beer, good laughs and great times. Some of the funny antics and craziness that goes on in in the video below:

What do you think, well not too wild or crazy, cuz this is a public forum but you get the idea, Paraguayans are very friendly and fun to be around. So when visiting Paraguay get out, meet some people and most importantly, have fun!!

Recently Google announced that it was eliminating it’s popular Google Reader which made it easy to gather all the cool stuff you got like to read about on the web and put it all in one place for you to read, comment, make notes and star at your leisure. Well…. we have a solutions….read more

The truth about residency and citizenship in Paraguay

A friend of mine here in Asuncion is a partner in one of the leading investment firms in town. We were having drinks at my hotel the other evening talking about events around the world and thinking about what might happen next.

At one point he told me, “You know, I really feel like the decline of the dollar is going to cause a lot of problems in the world– rising prices, currency imbalances, social unrest… I feel very safe here in Paraguay though because we have everything we need: food, water, and energy.”

He’s right. Paraguay, usually overlooked, really does have just about everything that it needs. There is so much land here available for livestock or crop production, and the country sits atop one of the world’s greatest freshwater aquifers.

Meanwhile, businesses are feverishly growing alternative fuel crops, and Paraguay also boasts the largest hydroelectric facility in the world with an annual capacity of roughly 90 TWh; they use only a tiny fraction and export more than 85% to neighboring Brazil.

Paraguay’s economy has benefitted from rising commodity prices and overall regional growth… and despite the government’s occasional left-leaning saber-rattling on behalf of the rural poor, politicians generally tend to stay out of the way.

Paraguay’s tax burden (as a percentage of GDP) is among the lowest in the world at around 12%, the same as Hong Kong. It’s 28% in the US and averages 35% among OECD members. For this reason, Paraguay is a mini tax haven… but not on anyone’s radar.

Paraguay’s individual income tax (first established in 2010, then temporarily suspended) is only 10%; it affects only the higher income earners, and it only applies to income sourced within Paraguay, not worldwide income.

I’ve read a few blogs that say Paraguay does not have an income tax. This is simply incorrect… one of the many inaccuracies I’ve been seeing lately from new monkey see, monkey do expat sites.

The Internet is both a blessing and a curse… and this is the curse– massive factual inaccuracies. The digital world has created a wiki-reality: if enough people believe it, then it must be true.

Internationalization is a rising trend and a lot of new ‘experts’ are jumping on the bandwagon. Unfortunately, this is leading to a lot of misinformation that gets recycled over and over across the blogosphere like a series of rip-off infomercials.

Here’s the truth– establishing a second residency overseas is a great idea; it ensures that you have a place to go should you ever need to leave your home country, and it can even lead to an eventual second passport. Note: “second residency” doesn’t necessarily mean that you have to spend time there.

Places like Paraguay are ideally suited for a second residency. Why? Because of the country’s political stability, energy and agricultural sustainability, low tax environment, and straightforward immigration procedure.

Make no mistake, though, there is an immigration procedure. Some people seem to think that you just show up, put some money in the bank, and apply for a passport. This is utter nonsense, and I always get a chuckle when I read such advice from people who obviously have little experience in the country.

I wrote about this at length in February’s premium letter and even flew one of my local Paraguay contacts to our recent offshore workshop in Panama. Needless to say, he was a popular guy at the event and has been quite busy in the past few weeks assisting many of our subscribers with their own residency here.

In the interest of accuracy and hopefully stopping the spread of misinformation, I’d like to provide a short summary of Paraguay’s immigration procedure:

1) Obtain necessary documents from your home country, including a clean police report, birth certificate, marriage/divorce certificates as applicable. All need to be certified by the Paraguayan consulate that oversees the document’s issuing jurisdiction.

You’ll also need to provide a bank reference letter, and, depending on your passport (US and Canadian), a tourist visa to Paraguay.

2) Travel to Asuncion and submit your application in person. Among other things, this requires establishing a local bank account with at least $5,500. Local bank rates are currently around 4% in USD, up to 12% in local currency. You’ll also need a medical screening and various other requirements on the ground.

3) The permanent residency application takes up to 4-months to be approved, though it can be much less if you use a well-connected facilitator.

4) After three years as a permanent resident, you are entitled to apply for naturalization.

Clearly there are a lot more details and many situations that must be reviewed on a case-by-case basis. For example, do you hold a different citizenship as your country of birth? Do you require proof of funds? These may impact the situation.

As with most things, immigration procedure in Paraguay is all about who you know. The right contacts in Paraguay really streamline (NOT circumvent) the process.

Naturally, everyone pretends to be well connected. I can’t tell you how many places I’ve been where people claim to have an ‘in’ with the President.

Just like relying on misinformation, working with the wrong people is a surefire way to lose money… or worse… get caught up in some illicit forgery or bribery scandal. It’s simply not worth it.

Applying for Paraguayan Residency

The Paraguayan Immigration Service requires a national police record for applicants applying for residency. In order to request a “national” police check, U.S. citizens should contact the FBI for a check of all state police records. The FBI accepts requests from private American citizens for this purpose. For more information, please visit the FBI at http://www.fbi.gov/hq/cjisd/fprequest.htm The fee for this service is $18.00 and can be paid by money order, certified check made payable to the Treasury of the United States, or by credit card (see form on FBI Web page).

To request an FBI namecheck, you will need to have your fingerprints taken. The Consulate can provide you with the appropriate fingerprint card. Unfortunately, the Consulate can not take fingerprints or mail documents. However, you can have your fingerprints taken in Asuncion at the local INTERPOL Office. You can contact that office at: (021) 480-199 or 422-426/7 and request an appointment. The estimated fee for this service is Gs.50.000. Address: Coronel Gracia 468 between Dr Mazzei and Teniente Rodi St. (Behind Police Station # 1 Sajonia neighborhood). Regular offices hours: Monday to Friday from 7:30 to 17:00.

Once you’ve had your fingerprints taken, you will need to mail the fingerprint card, a cover letter (see FBI Web page) and payment to the FBI at the following address:

FBI CJIS Division – Record Request

1000 Custer Hollow Road

Clarksburg, West Virginia 26306

AUTHENTICATION OF POLICE OR FBI CERTIFICATES OF LACK OF A CRIMINAL RECORD: The FBI’s CJIS Division (Criminal Justice Information Services Division) will authenticate U.S. Department of Justice Order 556-73 fingerprint search results for international requests by placing the FBI seal and signature of a Division official on the results, if requested at the time of submission. Documents prepared in this matter may then be sent to the U.S. Department of State Authentications Office by the requestor to be authenticated if necessary. Please be sure to indicate the country in which the document is to be used. The FBI procedure became effective 1/25/2010 and will apply only to documents finalized after that date. Requests to authenticate previously processed results will not be accepted.

The FBI requires 6-8 weeks for processing upon receipt.

You must provide your return address, which may be via a FEDEX Account to ensure receipt of your report (please see return Mail Options on Applicant Information Form).

In compliance with the Paraguayan Immigration Law, the FBI Report must be legalized by the Paraguayan Consulate in the United States. Your report will not be accepted without the corresponding legalization.

Please note that it is your responsibility to forward your FBI results to the Immigration Office and verify the status of your record request with them.

Disclaimer

Some of this information might be very US-centric, as all of this is based on my own experience obtaining permanent resident status in Paraguay. If you have additional information that is more specific to your country of citizenship, feel free to post another answer to help future visitors (: (more…)

Our client and good friend Mr. PZ recently landed in Asuncion via other destinations in South America to work on his residency in Paraguay and look into possible business ventures and opportunities. We are happy to bring you some of stories, news and notes directly from Asuncion! (more…)

Paraguay Opens Doors to Unregulated Foreign Investment

ASUNCION, Jul 27 2012 (IPS) – In his first month as president of Paraguay, Federico Franco has thrown open the doors of his country to foreign investments that have raised questions about environmental safety. (more…)